because a neighbor told firefighters that's what they thought was going on. they have other reasons to be suspicious. take a look now, huge scene still here, pg&e involved, heavy equipment, here's what happened. i talked to the homeowner who got out safely he said he doesn't know about any kind of meth lab in his home. the two people wholy here are his tenants they were taken to the hospital police are talking to them. the homeowner told me they suffered from smoke inhalation. when firefighters got here the fire was huge before 1:00 this morning it was moving so fast they had suspicions, it seemed like it was accelerating quickly. they were also suspicious, because the gas main caught fire that's why pg&e is here it happened at shut-off they had to dig up the street to get in and shut it off. firefighters say this could be because the people here were

bypassing the gas and electric meters. one more thing for them to investigate. >> that's why the arson team is here, trying to figure out what happened this is all new, they say right now, it is under investigation. two people taken to the hospital, we don't know their condition. the homeowner told me he thinks they inhaled smoke. all firefighters are okay. they kept the fire to this one house the homes are right next to each other. one home destroyed, the other hopes are okay. amy hollyfield, abc7 news. dakota san jose fire investigators are -- san jose fire investigators are trying to determine how an apartment fire that killed two grandparents and their 4-year-old granddaughter. family members say a 23-year-old cousin is in

intensive care. efforts are still being made to enable more than 50 displaced residents to return home. sue thompson will have a live report in 30 minutes. observing -- oakland police are searching for the person who shot and killed a 15-year-old girl. investigators say a group was walking three blocks east of the coliseum yesterday afternoon when a teenaged boy approached and opened fire with a handgun. the girl died at the scene the. 14-year-old boy was wounded. police say his injuries are not life-threatening. witnesses tell police the shooter was 13 to 16 possibly wearing a redshirt, he ran. going over the fiscal cliff could be hours away. the countdown to the new year could bring economic gloom if congress doesn't get a compromised bill to the president before midnight toe without a deal tanks are set to go up for -- midnight

tonight. without a deal taxes are set to go up for everybody. >> reporter: they will meet again i the tension is growing here in washington after the weekend talks failed to lead to a deal, if there is no breakthrough today, the country will go over the cliff. talks continue, this morning still no deal. >> further announcements perhaps at 11:00 in the morning, i hope so. >> reporter: republicans and democrats negotiated all weekend with the hope of passing legislation that would protect most from a massive tax hike set to kick in tonight midnight. >> the president: our top priority has to be to make sure that taxes on middle class families do not go up. >> reporter: there was optimism about a deal over the weekend when the republican leader in the senate, mcconnell made offer that ended when majority leader harry reid said he could not present a counter proposal.

mcconnell called for help. >> i placed a call to the vice president to see if he could jumpstart the negotiations on his side. i want everyone to know i'm willing to get this done. but i need a dance partner it >> reporter: white house officials say vice president biden is now playing a direct role in the talks. two parties remain at odds over the automatic across the board cuts to programs of defense. also divide on taxes. white house wants to raise tax rates on people making more than $250,000 a year. republicans would like to keep the estate tax from going up. >> if we are not able to reach an agreement, it would be dire. >> reporter: if there is no deal today, the average american family will see a tax hike of $3400. tahman bradley, abc7 news. >> -- any chance a deal might include retiring the country's debt? >> reporter: slim to none. republicans and

president obama will be fighting about the debt next year. republicans wanting to use the debt ceiling as a bargaining tool. we might be back again seeing a fight like this next year. >> tahman bradley, thank you. minimum wage workers in san francisco are getting a raise in the new year. the minimum wage is increasing from $10.24 to $10.55. in;a(j 2003 voters approved ordinance tying minimum wage to inflation in the bay area compensation has gone up every year since, except between 2009 and 2010. san francisco has the highest minimum wage in the country. if you are a homeowner here in california you will get foreclosure protection from a new law. providing homeowners with a single point of contact if they want loans modified. lenders will be banned from foreclosing while evaluating a

request. homeowners can sue lenders who violate the new law. >> january 1st, plastic bags will no longer be available at stores in alameda county. stores will charge at least 10 cents for paper, plastic or produce -- plastic bags for produce will still be free. 49ers' players and fans will have a happy new year thanks to sunday's win. the 9ers knocked off the cardinals 27-13. the victory made the 9ers winners of the nfc west, two years in a row. the playoff game will be held in san francisco january 12th, 5 in the evening.gzk yesterday's highlights including gore scoring 50 first rushing up down, day -- 51st rushing touchdown, a

we get that important buy. >> good stuff. good stuff for the weather too. >> let's check in with mike. it is going to be dry extended period of dry weather, good morning. a few high clouds the last three hours, otherwise it is quiet on live doppler 7 hd. we have frost forming inland, as far as fog, air is too dry for fog, unlimited visibility this morning as you are heading out and about. let's break down this last day of 2012, 32° at 7:00 inland around 40 for the bay, 38 for the coast. upper 40s by the time we get to lunch hour mostly sunny. low 50s throughout the afternoon. it will drop sharply once the

sun sets. this evening 39 at 7:00 inland, 42 at the coast, 45 at the bay. next three days after today, new year's day partly cloudy, mid 40s. freezing cold wednesday morning in the afternoon only low to mid 50s, small chance of a shower in the north bay thursday, otherwise it is going to be dry. taking a look now at traffic. >> what traffic! >> 101, 27 minutes from highway 12 to highway 37, you can see 80 and 85, all smooth. live pictures outside. >> those of you driving this morning in san jose on 87 a few headlights, not much. golden gate bridge, live look there ah-ha, we are waiting for the first headlights, the deck is dry, no weather issues or driving issues.

quiet bus ride takes deadly turn. a tour bus crash in oregon so devastating the injured are being treated in three states. deep freeze gripping a huge stretch of the country. >> first this morning's tech bites. worries about lithium batteries. new regulations kick in next year on shipments of the batteries. some say the new rules don't go far enough after several accidents involving air cargo. federal government is making it easier for companies to get approval to offer inflight internet service no word on when passengers will be allowed to use electronic devices during takeoffs and landings. big apple blaming tech apple for rise in crime, increase in thefts of apple devices in new york more than covers the increase in major crimes,. phones and ipads, favorite targets. zynga sending pet bill to the pound one of 11 games the

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this morning livermore police asking for help in finding a killer after a man's body was found near a golf course saturday morning. family and friends gathered for a vigil last night to celebrate the life of 28-year-old kenneth ogden. unofficial cause of death not released. investigators trying to determine if ogden died where he was found or if his body was dumped there. secretary of state hillary clinton is being treated this morning for a blood clot. doctors won't say where that clot is located.

>> reporter: secretary of state clinton was admitted to new york presbyterian hospital sunday with a blood clot, stemming from a concussion she suffered several weeks ago. the doctors discovered the clot earlier in the day during a follow-up for that concussion. no details of where the clot is or other concerns have been released this is not the first time clinton has been diagnosed with a blood clot in '98 she was admitted for a clot behind her right knee the 60 few-year-old had a stomach virus earlier this month -- the 65-year-old had a stomach virus earlier this month. she cancelled a trip because she was not feeling well then capitol hill to testify on the september 11th, attack on the consulate in libya. she is being treated with anti-coagulants. doctors want to monitor the medication over the next 48 hours. people in several parts of

the u.s. facing dangerous driving conditions, snow storm producing strong winds and freezing temperatures.=qçüc% crews kept busy plowing roads while homeowners cleared several inches of snow in new england this weekend. these joggers braved the snow in boston. other folks stocked up on supplies. >> are you ready mentally for a bunch of of snow? >> i don't even know what is coming. one step at a time. do >> do you like snow? >> it is okay. it is new england, what are you gone that do? >> that you hear is the sound of powerful winds ripping through arlington county, virginia shredding plastic sheeting that covered a highrise. >> we've got to be thankful, even show the snow we did get over the weekend in tahoe just enough to make the slopes awesome with fresh powder, nothing so severe you can't get there. gentleman perfect storm after

all that he -- >> perfect storm after all that -- it is going to be dry for a while extended period of dry weather is taking over after a soggy december. you can see on live doppler, we are picking up on some of that clear air, no radar returns, no rain in this forecast, you can put the umbrella away for a while. cold in some areas, check out concord and live more, flirting with frost there same with santa rosa 34, check out the peninsula, 35 redwood city, 36 mountains view and los gatos, 34 san , warm spot fremont, oakland, half moon bay 45. -- mid to upper 30s monterey bay and end land now, getting cold there too. -- i think it is going to be mostly sunny and seasonal temperatures today, frost

likely next two nights wednesday morning probably the coldest morning in the forecast, extended period, dry. one speed bump i'll show you. other than that dry. high clouds and sun today, low to mid 50s everywhere upper 40s possible at some spot as long the coast. monterey bay and inland low to mid 40s high clouds and sun. tonight 29 livermore, napa, 30 santa rosa, 27 cloverdale, 31 vallejo, 33 concord and fremont, 34 palo alto, 35 san jose. looks like it is going to be better for widespread frost tonight. three areas of high pressure dominating the west coast, sending the storms to the south, sending them up to the north, storms that try to punch through like this one, get broken apart, so blocking high equals dry pattern. one storm is going to try make a run at it there's a slight

chance thursday morning of a shower up in the north bay otherwise we could hit 60 in some spots$ñ:rl come this weeke. have a great day. we are keeping an eye on traffic this morning, sue is off. map in livermore of the altamont pass moving along, better than average all green dots, averaging 65 to 54 miles an hour, 18 minute commute time we want to take you live look outside at the maze you can scarcely call it that this morning jut a few headlights all traffic -- just a few headlights, all traffic moving smoothly. police in newtown, connecticut say the body of gunman adam lanza has been claimed for burial by a person

who wants to remain anonymous. >> the giants honored family members of the victims and children who survived at giants' stadium yesterday, players greeted the kids, teachers and parents as the team ran on to the field before the game against the eagles. the team and fans observed a moment of silence for victims. death toll has reached nine in a tour bus crash on an icy highway in oregon. police say the driver of the charter bus lost control on slick pavement. the bus skidded through a guardrail and tumbled)@lku(s hundred feet. 40 were traveling from las vegas to vancouver, british columbia, in addition to the nine who died, more than 20 were injured they are being treated in oregon washington and idaho. he tried to give police

the family of a man who vanished after judgment ing -- after jumping in a creek. [ inaudible ]

are you looking for a new way to ring in the @=> year? a donate-a-thon event today to encourage people to make tax deductible donations and thank donors. this party will be at goodwill san francisco headquarters on mission street starting at 7:00 this morning live music and prizes, including tickets to the san francisco zoo and movie theater >> the san francisco asian art museum rang in the new year early with traditional japanese bell-ringing ceremony.

butte disses -- buddhists in san francisco welcome the new year by clanging the bell 108 times yesterday, this is the museum's 27th annual bell-ringing ceremony. the bell's tone is used to curb mortal desires. as 2012 comes to a close you can look back at this year's top seven news stories, videos and photo slide shows at abc7news.com. i would like to say that my first resolution has become that much harder to(ac obtain thanks to mike this morning. >> cookies. generous, thanks mike eating cookies already this morning. >> i couldn't eat them all myself, i wanted to share them. >> did you bake 'em all? >> i didn't make any of them, if they are good, sure, if they are bad, no. good morning.kl8

you know whatnex happens tomorr, everybody goes on diets i got rid of the cookies today. mostly sunny today, if you are traveling look at the entire state void of radar returns quiet one out there, may get a light shower near eureka, as far as it is going to get, 30 tahoe today, 36 yosemite, 50s sacramento, fresno, big sur, -- drive times fast, definitely speedier than usual 101 between highway 12 and 37, 28 minutes. 80 between highway 37 to the carquinez bridge, seven minutes, 80 few between 101 andrlé5 highway 17, 18 minutes. live pictures outside golden gate bridge no problems, deck is dry, smooth sailing. let's look at our next

location, i-80 through berkeley headlights heading into san francisco what you might expect on a day when some work a lot of folks have off. get out there and enjoy your drive. starting this coming weekend you have to pay for metered parking on sundays in san francisco. until now it was free. the transportation agency says the move will bring in two million dollars a year the mta says it is not about the money they say it is an effort to keep traveling moving. metered parking enforced from noon to 6 p.m. at fisherman's wharf from noon to 7 p.m. in an appeal to religious leaders the city has set up prepaid options. comedian katt williams has bailed out of jail after his latest run-in with the law, arrested on child endangerment and possession of a stolen gun. the arrest came after child welfare officials checked his home friday. he was arrested earlier this

related to a police chase, williams faces accusations of hitting a man with a in a >> family of a suspected drunk driver who disappear while trying to out-run police is offering a reward to find him. anthony donaldson of novato has been missing since he jumped into a creek to evade a sobriety test on christmas eve. his family suffer ago a $5,000 reward to find him -- his family is offering a $5,000 reward to find him. officials b.a in marin video games at five locations next machine. the program is made possible by donations, -- additional $5,000 came from private donors. the program was first proposed by the marin district attorney

after the connecticut school tragedy. as 2012 comes to an enrich money police reporting one of the lowest murder rates in the city in more than a decade. a total of 18 murders this year, down from 24 the previous year. the city has seen a -- decrease in other violent crimes such as attempted murder and assault. one detective says the drop is largely due to richmond's increased police force from 40 officers to 190 sworn officers in reason years. a little girl and -- and her grandparents are killed in an apartment fire. a devastated mother tells abc7 news how desperately she lawmakers in washington sign off and legislation that hits your breakfast table. [ male announcer ] pillsbury grands biscuits.

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good monday morning. december 30 -- december 31st. >> it is 5:00 the time is sneaking up ont;y-s, i'm kristen sze. and i'm katie marzullo in for eric thomas. mike is in the weather center with the chilly forecast. i'll take the cold over the rain. >> that's probably a good trade off that is what is going to happen the next couple of days. live doppler 7 hd picking up dry air, a few high clouds.9."%p